Nicola Expands Embayment Skarn Zone To 250 Meters. Skarn Alteration Remains Open At Depth And To The West

VANCOUVER, B.C., December 21, 2017 – Nicola Mining Inc. (TSXV: NIM) is pleased to provide an update on its 2017 Exploration Program focused on copper exploration at its wholly-owned New Craigmont Property. The first four holes all successfully intersected skarn alteration, including previously untested segments of the Embayment Zone. The skarn alteration, consisting of a mineral assemblage of garnet-magnetite-epidote-chlorite, is associated with the Craigmont Copper deposit, which is located along strike to the east. As a result, the strike length of the Embayment zone has increased by 150 metres, bringing the total strike length of the zone to over 250 metres and it remains open to the west and at depth.

Skarn alteration intersected over 200 meters in holes NC-2017-01 and NC-2017-03 with an estimated true-thickness of 153.0 meters, and over 120 meters in NC-2017-04 with an estimated true thickness of 78.0 metres. Hole NC-2017-02 successfully defined the eastern boundary of the zone, where it terminates against the post-mineral Embayment Fault.

Embayment zone skarn alteration is open at depth and to the west.

Diamond drilling in 2017 was designed to test for continuity of the Embayment Zone at depth and along the west-striking zone of skarn-type alteration and copper mineralization encountered in historical drill holes and more recently, in DDH-THU-002. These first holes met this objective and will aid the geological team in future program planning.

Ongoing drilling continues to expand the Embayment Skarn zone westward. The Company will release assays once analysis of all samples has been completed.

Craigmont Mines Limited put significant importance on the Embayment Zone and developed an underground portal to within 150 metres of the Embayment Zone.

Hole NC-2017-01 tested the Embayment Zone between DDH-THU-002 and S-100 and intersected 212.51 metres of copper mineralization associated with skarn from 253.05 to 465.56 metres. This mineralized interval is interpreted to have a true thickness of 163 metres. Hole NC-2017-02 was designed to define mineralization extending east from DDH-THU-002, whereas holes NC-2017-03, and NC-2017-04 were drilled approximately 90 metres west of DDH-THU-002 and targeted a previously untested portion of the Embayment Zone. Hole NC-2017-03 intersected approximately 240.0 metres of skarn alteration from 347.90 to 587.35 metres and hole NC-2017-04 intersected approximately 120.0 metres of skarn alteration from 390.79 to 512.57 metres. These intersections both correlate well with skarn alteration intersected in holes THU-002 and NC-2017-01. The current program continues to extend the skarn zone westward.

Figure 1:New and Historic Embayment Zone drill holes. Drilling in 2017 tested
the depth potential and expanded the target to the west.

The Embayment Zone is a historic skarn target that was identified by Craigmont Mines Limited through several surface and underground drill holes, the most notable being S-100 drilled in 1978, which had a 149 metre interval grading 0.47% copper beginning at 271.88 metres downhole (invalidated historical results). In 2016 the Company drill tested the target area with hole DDH-THU-002 and intersected skarn type mineralization grading 1.11% Cu over 86 meters (331.1- 417.0 metres).

Peter Espig, Chief Executive Officer of the Company, commented, “The results of diamond drilling in 2017 are extremely significant as it opens up the potential over the whole New Craigmont property for continued significant copper mineralization. We have several key zones that combine to make a very exciting project.”

Quality Control

The Company implemented a quality control program for this program to ensure best practices are utilized for sample collection and analysis of diamond drill core samples. Lithology, structure, alteration and mineralization was logged by the Company’s geologic team and sample intervals ranging from 1.0 metres to 2.0 metres in length were selected based on geology. Quality control measures include insertion of standards, blanks, and duplicate pairs into the sample stream at a frequency of one duplicate pair, one standard and one blank for every group of 30 samples submitted.

Kevin Wells, P.Geo, a consulting geologist to the Company is the independent qualified person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects for the technical disclosure contained in this news release. The scientific and technical content of this press release was reviewed by Mr. Chris LeClair, G.I.T., an employee of the Company and verified by Mr. Kevin Wells, P.Geo.

Nicola Mining Inc. is a junior mining company listed on the TSX Venture Exchange, and is in the process of recommencing mill feed processing operations at its 100% owned state-of-the-art mill and tailings facility, located near Merritt, British Columbia. It has already signed four mill profit share agreements with high grade gold producers. The fully-permitted mill is able to process both gold and silver mill feed via gravity and floatation processes. The Company also owns 100% of Treasure Mountain, its high-grade silver property, and a gravel pit, which is located adjacent to its milling operations.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.